Of those three, currently only the PlayStation is truly a digital set-top box.
Almost any existing analogue TV, even a black and white one, can be converted with the addition of a digital set-top box.
Not only does the OS bring in billions in profits, it provides users with a familiar interface, whether it is on their PC, personal digital assistant, set-top box, Tablet PC or cell phone.
And about 40% more will be able to view the digital signal through a digital cable or satellite set-top box on an analog TV they already own.
But without a digital TV tuner, or a cable or satellite set-top box that can convert a digital signal, consumers won't get any TV at all by 2009.
That should unleash some healthy competition: Within a few years it may not be uncommon to buy a set-top digital box that can not only decode cable transmissions, but is also a web browser, a game machine and a DVD player.
One of the first Digital DNA products is a set- top box made by Motorola.
It claims it was the first company to mass produce digital TVs (without the set-top box), in 1998.
The industry believes that the Internet will give consumers one more reason to pay for a digital pipeline and a clever set-top box.
Online sales of movies and music are booming, fueled by Apple's lineup of iPod digital media players, the AppleTV set top box, and now, the iPhone.
The sets are apparently targeting consumers who use their TV primarily for gaming or multimedia activities, or to customers who prefer to use a set-top-box to receive digital and HD content.
It also means offering broadband Internet service accessible via a personal digital assistant, game console, cell phone or set-top box.
Why not push digital music and video stored on a PC or set-top box with a hard drive to any TV or stereo system in the house?
Now, for the first time, Allen is competing directly with Gates for the same business: set-top-box software that lets cable companies offer digital video recording, video on demand and, eventually, shopping.
The Peerless drive, for instance, which uses big cartridges that hold up to 20 gigabytes of data, might be useful for in-car digital audio players or as a removable drive for storing video in a TiVo -like TV set-top box.
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